Nigeria’s banks and fintechs have just over a year to move payment data onshore ahead of a strict January 2027 deadline.
The Central Bank’s June 2026 directive requires all payment transaction data generated in the country to be stored and processed locally from the start of next year. The rule affects banks, fintechs, mobile money operators, switches and processors that currently rely on foreign cloud platforms.
For many institutions, the task goes far beyond a simple data transfer. Core banking systems, real-time settlement engines, fraud detection tools and other interconnected services must be moved without disrupting daily operations. Technology leaders are now weighing how to balance speed, security and reliability during the shift.
The financial cost is significant. Expenses include new infrastructure, application redesign, cybersecurity upgrades, staff training and disaster recovery setups. Industry experts warn that poorly planned migrations could lead to service disruptions for millions of customers.
Local providers such as MTN Nigeria are positioning themselves to support the transition, highlighting data sovereignty and scalability. While the deadline adds pressure, observers say it could also boost investment in Nigeria’s domestic data centres and cloud ecosystem, provided institutions approach the move with careful planning and phased execution.
